Fair value measurements of exchange-traded funds

Badenhorst, Wessel

doi:10.1108/medar-06-2014-0045

Cited by 3 publications

(1 citation statement)

References 28 publications

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“…Despite the fact that prior literature examines tensions created by fair value accounting (Whittington, 2008; Ravenscroft and Williams, 2009), few researchers address the practical challenges of implementing fair value accounting requirements. Most of the existing implementation papers adopt quantitative methodologies and provide a solid grounding for more qualitative studies (see christensen and Nikolaev, 2009; Palea and Maino, 2013; Du et al , 2014; Badenhorst, 2015; Alexeyeva and Mejia-Likosova, 2016; Ayres, 2016; Palea, 2019; Oyewo et al , 2020; van Zijl and Hewlett, 2021). In addition, these studies have been conducted, on the whole, on developed economies.…”

Section: Introductionmentioning

confidence: 99%

Fair value accounting implementation challenges in South Africa

Pandya

Zijl

Maroun

2021

JAEE

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PurposeThe objective of this research is to explore the challenges being encountered when applying and implementing fair value accounting requirements, focusing specifically on the determination of fair value per International Financial Reporting Standards (IFRS) 13: Fair value measurement (IFRS 13) in the South African capital market.Design/methodology/approachData are collected from 20 detailed interviews, primarily with preparers and interpretively analysed to identify how individuals internalise the requirements of IFRS 13 and the challenges associated with its application. The researchers focus specifically on South Africa because of its status as a developing economy and, at the same time, its extensive experience in applying IFRS.FindingsSouth African preparers appear reluctant to change from a conventional cost-based measurement approach to one grounded in fair value. Primary concerns include the perceived usefulness of fair value accounting and its conceptual appropriateness, given its perceived de-emphasis of the traditional stewardship role of financial reporting. Related challenges to the application of IFRS 13 include concerns about the cost of determining fair value; the inherent subjectivity of fair value measures and the practical difficulty of calculating fair values when markets are not efficient or where business environments are complex and dynamic where Level 1 inputs are not widely available for all assets and liabilities. These challenges encourage preparers to choose accounting policies, which minimise the use of fair value or apply the provisions of IFRS 13 legalistically.Research limitations/implicationsData are collected from a group of respondents from a single developing economy. Additional research on the application of IFRS 13 in other developing markets will be required to conclude on the relevance of economic, cultural and social factors for the understanding and implementation of new accounting standards by practitioners.Practical implicationsStandard setters and regulators cannot assume that new accounting standards will be interpreted and applied as intended. Even when compliance with IFRS is mandatory, preparers have considerable discretion when it comes to operationalising accounting prescriptions. Unless the challenges raised by preparers are addressed, misapplication of IFRS is likely to continue.Originality/valueThe research makes an important empirical and practical contribution by providing primary evidence on the operationalisation of IFRS 13 in a novel setting. It complements earlier research which has focused primarily on the conceptual/theoretical dimension and on American and European perspectives.

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Section: Introductionmentioning

confidence: 99%

Fair value accounting implementation challenges in South Africa

Pandya

Zijl

Maroun

2021

JAEE

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Premiums and discounts of exchanged-traded funds

Badenhorst

2016

South African Journal of Accounting Research

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A review of accounting research in internationalising journals in the South African region

Villiers

Hsiao

2017

SAJEMS

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Background: This study analyses the accounting research articles published by South African journals.Aim and setting: A review of accounting research in internationalising journals in the South African region that publish accounting research.Methods: The characteristics of accounting articles were analysed. Five journals were analysed, including the four internationalising journals, Investment Analysts Journal, Meditari Accountancy Research, South African Journal of Business Management, and South African Journal of Economic and Management Sciences and one local journal, South African Journal of Accounting Research (SAJAR).Results: The findings of this study will be of interest to journal editors, authors who would like their research to make an impact and be cited, as well as university research administrators and government higher education policy-makers.Conclusion: The analyses show that many of the highly cited articles have been published recently, boding well for the citation statistics of these journals in future and indicating some success in their efforts to internationalise. The citations of SAJAR lag behind the citations of the internationalising journals. Each journal publishes articles that cover different subject area(s). Within accounting research, accounting education and social and environmental accounting are popular areas of research, whereas taxation; the public sector; and management accounting are not well represented among published articles during 2015–2016 in these five journals. About half of all accounting articles claim their insights will contribute to the accounting literature, with much smaller percentages claiming to contribute to management, policy-making and practice. The most prolific authors and most prominent universities to some extent follow the most popular subject areas, with a social and environmental researcher, Warren Maroun, featuring strongly, and his university, the University of the Witwatersrand, being prominent. Large proportions of authors of 2015–2016 articles are from outside of Africa, speaking to the success of the internationalisation efforts of the internationalising journals, whereas SAJAR mostly publishes articles by African authors.

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Fair value measurements of exchange-traded funds

Cited by 3 publications

References 28 publications

Fair value accounting implementation challenges in South Africa

Fair value accounting implementation challenges in South Africa

Premiums and discounts of exchanged-traded funds

A review of accounting research in internationalising journals in the South African region

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